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Everyone keeps saying he foolishly risked too much. What if he was a doctor and went back to being a doctor? He was skilled in a field with a lot of demand at that point in time. So what if you lose X amount of dollars, risk is not so OBVIOUS when at that time there were companies everywhere...

Ok I appreciate the insight it makes a lot more sense now. If I get assigned to sell the short call any time before 3:59 EST on expiration Friday the short position would automatically be bought back by the broker for market price (unless the account has sufficient funds to hold that...

Yes, thanks for the replies.

So will the broker just instantly cover the short position at market price? If XYZ is trading below 105 won't I see that? Why do I exercise the 105 call and lose more on the spread rather than let it expire worthless? Maybe that is where I am not understanding when you say gamble. I don't get...

Lets say hypothetically speaking that I have an account value of $500. I initiate ONE 100/105 bear call spread on XYZ for a net credit of say $3. XYZ 100 call= $5, XYZ 105 call= $2. If at expiration XYZ is at 105 will I be required to buy 100 shares of XYZ at $105 thus being...

I don't believe that it is entirley right to say that his life was gambled away when one major influential factor was that it was previously UNKNOWN that we were on the verge of a global meltdown. YES it IS stupid to take a large portion of your net worth and risk it in a financial endeavor...

I used to deliver newspapers for $7.20/week. I wanted more so I got a better job and then after a while I still wanted more. I make a good living now. I still am looking to improve. 10 years ago I would have thought that making half as much as I do now would suffice for the rest of my life...

I havn't a clue in McDonaldology. But given the difficulties in a startup of that sort, I would attribute that as to why he did not take that route rather than something he felt more confident in. I guess people that want to get involved in a business proposition that is a sure success would...

If this is true then everyone who has enough money to buy a McDonalds should do so instead of incuring risk elsewhere. Why aren't there twice as many McDonalds as there are? If the cost of owning a McDonalds was twice as much would it still be a sure success? There is no free money out there...

I don't think judging by this short article that anyone can argue whether or whether not the man took legitimate steps in his endeavors. It must be rather unlikely although of course not impossible for a college educated person with a family to carelessly gamble their life savings away...

GREAT POST! Hindsight is 20/20. Ill decision making and stupidity is always so obvious after the fact isn't it? This guy thought he had a great idea, stuck his neck out and put his money where his mouth is. FYI there is a risk in venture capital. A risk that most people don't have the...

Jealous of the fact that you have to go on this site in a last resort attempt to get laid? The jealousy is eating me up inside let me tell you. I am not even a good trader and I get laid all the time.

I agree, great post.

No one really addressed this post. To me it makes the most sense.

Thanks Libertad for the insight. I definitey agree that buy and hold is a lost cause. What was not clear to me was how the past ten years was compared to 1929-39. I was actually reading some material on the great depression and not only was the dow down almost 90% from 29-33 but the economic...

How do you adjust for inflation a percentage change in two different points in time? The article said that the dow lost 50% over a ten year period and adjusting for inflation it equals the loss accumulated over just this pass year. Maybe a dumb question but I do not understand. From peak...

You think 44% is bad??? Try 90% from peak to trough. Thats how bad it was then. Look it up theres a ton of interesting info. Here are some facts courtesy of wikepedia. Effects of depression in the United States: -13 million people became unemployed. In 1932, 34 million...

We live in a world of natural selection where only the strong survive (or get paid more). This concept, originally applied in biology is paralleled to economics. Yet when we think of what it means to survive in a society we equate survival with success. The level of success a person has is...

haha this is kind of funny. Talk about bullshit posting... Did it ever occur to anyone that your source of information may not always be accurate? Here is a line copied from the standard and poors website which seems to be a reliable source. Hey maybe I am wrong, I didn't confirm this i just...

This is a simple idea that most beginners think of before learning a basic spread. Why do you come across as if you struck oil? The fact that you described a strategy as "guaranteed" and "risk free" points to your ignorance. Did you consider the fact that any time you make a trade there is...